February 1, 2013

By Derek On February 1, 2013 Under Uncategorized

In this week’s Emerging Markets Illustrated we examine the changing fortunes of Chinese medical equipment maker, Shandong Weigao which has been jilted by its fickle American partner. Will she get over the breakup and march to a higher and happier plane or will her former boyfriend’s record collection still cluttering up her apartment hold her down? China is moving large numbers of people and even larger amounts of cash overseas and not surprisingly they are doing what Chinese love best: buying property. One of the world’s safest and quietest countries is now experiencing a housing bubble. The locals are none too happy because it apparently means less trips to the cinema. There’s a party going on…in the junk debt market and Chinese property companies have taken over the dance floor. After leaving because the music is too loud we wander over and take another look at shadow financing in China. Real bank lending, not “social financing” is weak. What does this mean? Prada seems to be always in style but has taken a bit of a dressing down in the market of late. We revisit the story and second analyst Janey Dillon’s opinion that a temporary buying opportunity is approaching. Finally, in the US the Dow is within a hair of a record high and the 10-year yield has risen to 2%. Is the big switch out of dull fixed income into lively global equities just beginning?

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